This paper presents a novel method for condition monitoring using the RMS residual of vibration signal reconstruction based on trained dictionaries through sparse representation theory. Measured signals were firstly decomposed into intrinsic mode functions (IMFs) for training the initial dictionary. In this step, an adaptive variational mode decomposition (VMD) was proposed for providing information with higher accuracy, and the decompositions were used as discriminative atoms for sparse representation. Then, the overcomplete dictionary for sparse coding was learned from IMFs to reserve the highlight feature of the signals. As the dictionaries were trained, newly measured signals could be directly reconstructed without any signal decompositions or dictionary learning. This meant errors likely introduced by signal process techniques, such as VMD, EMD, etc., could be excluded from the condition monitoring. Moreover, the efficiency of the fault diagnosis was greatly improved, as the reconstruction was fast, which showed a great potential in online diagnosis. The RMS of the residuals between the reconstructed and measured signals was extracted as a feature of condition. A case study on operating condition identification of a diesel engine was carried out experimentally based on vibration accelerations, which validated the availability of the proposed feature extraction and condition-monitoring approach. The presented results showed that the proposed method resulted in a great improvement in the fault feature extraction and condition monitoring, and is a promising approach for future research.